USB booting :: Installing DSL to SanDisk 2gb cruzer

I deinstalled U3 software in windows for my new drive. I am wondering how to get DSL installed on it. I booted the live cd and did a USB-ZIP install. I rebooted but it didn't work. I then tried a USB-HDD install and that sort of worked. It froze shortly after it started loading at this screen:

SYSLINUX ...

Any clues?

original here.